MSCI confirmed the delisting of Strategy from its USA Index and Metaplanet (3350.T) from its Japan Small Cap Index at the close of Nov. 30, according to filings published Wednesday. The removals were mostly expected, especially after MSCI adopted new eligibility rules for so-called non-operating companies last month, which put several crypto treasury firms on the proverbial chopping block. Ethereum treasury company Sharplink was not listed among the deletions in the November small-cap review.
New Screening Criteria
The new rules look at companies’ operating assets and five financial measures, replacing temporary restrictions on firms that held at least half their assets in crypto. MSCI previously said that companies on its indexes would face removal if they failed this screening for their two most recent annual filing periods. This framework clearly targets firms with minimal operational activity relative to their balance sheet holdings. However, the index provider’s review documents did not give company-specific explanations for the removals, leaving investors without granular details on why specific tickers failed the threshold.
Strategy Executive Chairman Michael Saylor and Phong Le previously spoke out against the rule change, calling the proposed treatment of digital asset treasuries "discriminatory." In a September letter, Strategy argued that exclusion would have no meaningful impact on its business but would harm MSCI’s reputation as a neutral index provider. The criticism remains valid given the lack of transparency in the final decision process.
Market Reaction
Strategy’s common MSTR shares fell 2.6% in after-hours trading to $119.06 following the announcement. Metaplanet shares closed Wednesday down 2.53% at 231 yen in Tokyo, before MSCI announced the removals. The market reaction suggests limited immediate shock, likely because the regulatory shift was anticipated by major stakeholders. Investors now focus on how these exclusions affect passive fund flows rather than active trading sentiment. The absence of specific reasons in the MSCI documentation complicates any immediate strategic response from the affected companies.
The delisting stands as a definitive test of MSCI’s commitment to neutral indexing standards while managing exposure to volatile asset classes. Companies must now demonstrate stronger operational metrics to regain inclusion. The current situation underscores the growing scrutiny faced by treasury-focused firms seeking broad index representation.
